Do you wonder why the prices for used cars continue to rise why the supply continues to diminish?
Go back in time several years to when the president and Congress introduced the multi-billion dollar “Cash for Clunkers” program.
Many still believe that this was a Three Card Monty street hustle. First, taxpayers bailed out failing auto manufacturers with tens of billions. Next, to generate sales to these same companies which taxpayers represent the majority owner – Uncle Sam offered $4,500 rebates to trade in older cars with poor fuel efficiency to promote the sales of cars with better fuel efficiency.
$1 billion was insufficient, so Congress authorized and appropriated another $2 billion which didn’t exist. Add three Billion dollars more on top of a record $1.7 trillion deficit. Worse, we destroyed the older cars.
At the end of the day, Uncle Sam took money out of one taxpayers pocket and put it in another. The temporary sales spike quickly ended. The used car sales market suffered from fewer available stock. College students, single parents, working and middle class Americans looking for a used car to get to school or work have fewer but more expensive used cars to select from.
The air quality benefits of newer versus older cars at the end of the day have insignificant impact on the environment in most communities.
That is why in 2010, voters “traded in” many incumbent Congress members for a fresh new model who is more efficient at not wasting our hard earned money.
Larry Penner
Great Neck
